Estimating Moderating Effects in PLS-SEM and PLSc-SEM: Interaction Term Generation*Data Treatment

Journal of Applied Structural Equation Modeling, 2(2), 1-21, June 2018

Posted: 15 Aug 2018

See all articles by Jan-Michael Becker

Jan-Michael Becker

University of Cologne - Department of Marketing and Brand Management

Christian M. Ringle

Hamburg University of Technology (TUHH)

Marko Sarstedt

Otto-von-Guericke-Universität Magdeburg; University of Newcastle (Australia)

Date Written: June 15, 2018

Abstract

When estimating moderating effects in partial least squares structural equation modeling (PLS-SEM), researchers can choose from a variety of approaches to model the influence of a moderator on a relationship between two constructs by generating different interaction terms. While prior research has evaluated the efficacy of these approaches in the context of PLS-SEM, the impact of different data treatment options on their performance in the context of standard PLS-SEM and consistent PLS-SEM (PLSc-SEM) is as yet unexplored. Our simulation study addresses these limitations and explores if the choice of approach and data treatment option has a pronounced impact on the methods’ parameter recovery. An empirical application substantiates these findings. Based on our results, we offer recommendations for researchers wishing to estimate moderating effects by means of PLS-SEM and PLSc-SEM.

Keywords: Interaction Term, Moderation, Moderator Analysis, Partial Least Squares, Path Modeling, PLS-SEM, PLSc-SEM, Structural Equation Modeling, Unstandardized Data

Suggested Citation

Becker, Jan-Michael and Ringle, Christian M. and Sarstedt, Marko, Estimating Moderating Effects in PLS-SEM and PLSc-SEM: Interaction Term Generation*Data Treatment (June 15, 2018). Journal of Applied Structural Equation Modeling, 2(2), 1-21, June 2018, Available at SSRN: https://ssrn.com/abstract=3223421

Jan-Michael Becker

University of Cologne - Department of Marketing and Brand Management ( email )

Albertus-Magnus-Platz 1
Cologne, 50931
Germany

Christian M. Ringle (Contact Author)

Hamburg University of Technology (TUHH) ( email )

Am Schwarzenberg-Campus 4
Hamburg, 21073
Germany

HOME PAGE: http://www.tuhh.de/hrmo

Marko Sarstedt

Otto-von-Guericke-Universität Magdeburg ( email )

Universitätspl. 2
PSF 4120
Magdeburg, D-39106
Germany

University of Newcastle (Australia) ( email )

University Drive
Callaghan, NSW 2308
Australia

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